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curreyr

curreyr
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  • My Roth Conversion Odyssey (Part 1) [View article]
    The rules also apply to opening a Roth. You must have earned income, but not too much.
    Oct 15, 2014. 03:03 PM | 1 Like Like |Link to Comment
  • My Roth Conversion Odyssey (Part 1) [View article]
    "Both account types shelter profits from tax permanently."

    No, they don't. In fact, neither is 'permanent', it does get paid.
    A 'tax-deferred' will have the taxation forced at a schedule (either to the individual or their heirs).
    A 'tax-free' has the taxation at contribution/conversion as the individual chooses.

    It is correct that, if the tax rate is equal, then the 'tax-tail' is equal. What isn't equal is when it is to be paid and that can result in 'unintended consequences' where the tax rate being paid is not equal (as well as other consequences).
    Oct 15, 2014. 01:47 PM | 4 Likes Like |Link to Comment
  • Dividend Growth Portfolio Fall Checkup And Semi-Annual Review [View article]
    The biggest impact of the 'tax hit' will be to holders of retirement accounts where the account itself has to pay the tax bill (IIRC at corporate tax schedules).
    Oct 15, 2014. 08:30 AM | Likes Like |Link to Comment
  • Dividend Growth Portfolio Fall Checkup And Semi-Annual Review [View article]
    For us linux folks (or anyone else), the Kindle Cloud Reader works fine too ;)
    Oct 14, 2014. 06:10 PM | 1 Like Like |Link to Comment
  • Dividend Growth Portfolio Fall Checkup And Semi-Annual Review [View article]
    DVK,

    In general, think that it's fair to ignore the 'expenses' of this model portfolio as if it were in an IRA (e.g. commission costs are paid as part of the transactions, and non-taxable for dividends and cap-gains).

    In the case of the KMP re-org, I think you should you also model it as if the portfolio will bear the expenses of the re-capture that will become due.
    Oct 14, 2014. 05:10 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    'I should have stated the the Buy and Hold results for the DGI stocks is nothing short of "heart stopping."'

    I hope you mean that in the sense of non-fatal "heart stopping".
    Sep 2, 2014. 04:08 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    "I highly recommend the book and this essay in particular as it points out a series of standard requirements for benchmarking a portfolio and one is that the benchmark be investable."

    My, serious, question is why?

    IMO, the standard for a portfolio should be that it meets the needs of the individual.

    For someone who needs to sell a product, then their product compared to a 'benchmark' may be important.
    Sep 2, 2014. 04:06 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    "I come to SA for new ideas, facts, and evidence, and evaluate them on their merit."

    Wouldn't facts and evidence include real, demonstrated portfolio actions?
    Sep 1, 2014. 12:18 AM | 4 Likes Like |Link to Comment
  • Solazyme Gains A Partner For Specialty Soap Production [View article]
    I was talking with my wife about our position in SZYM, and mentioned they were behind algenist. She went out a few days later, got some 'samples' at a sephora, and now loves it.
    Aug 29, 2014. 06:32 PM | 4 Likes Like |Link to Comment
  • Kinder Morgan Shareholders Are The Winners Of This Transaction [View article]
    No, UBTI, if it exceeds $1000, will be taxed to the IRA at trust tax rates.
    This is why the 'general guidance' suggested to not hold KMP in an IRA.
    Aug 21, 2014. 10:10 PM | Likes Like |Link to Comment
  • ConocoPhillips: What Would It Do Without North American Shale Growth? [View article]
    The vote in AK about SB21 on 8/19 not even mentioned?

    COP owns the politicians currently in office in AK. Whether the owners of AK oil (aka. the people) allow the giveaway or not, will have an impact of "What Would It Do Without North American Shale Growth".
    Aug 18, 2014. 04:06 PM | Likes Like |Link to Comment
  • What Will Be The Impact Of Consolidation On KMP Unitholders? [View article]
    A sale now, or forced via the conversion, will have 3 components.
    1) return of capital. (tax-exempt)
    2) capital gains. (possibly offset if you _can_ apply carry-forward losses).
    3) distribution recapture. (offset if you have previous K-1's showing 'passive losses' which I believe is line 20v).

    #1 Is easy, no matter how the assets are held, exempt.
    #2 An IRA of any form is exempt. One may also avoid tax if held in a taxable account, and the holder has carry-forward losses, otherwise a 'capital gain/loss' for tax purposes.
    #3 The difference of recapture vs. passive losses will be taxable. It's simply a matter of the 'tax advantaged' nature of your non-tax 'partnership' distributions coming to fruit. In a taxable account this will be seen as ordinary income. In an IRA, if this amount exceeds the $1000 exemption for UBTI, the IRA will have to pay the tax which IIRC is corporate rate.

    So, Traditional, Roth, and/or inherited IRA's are very likely to have a tax hit. That tax will also have to be paid from the IRA account itself (e.g. if unable to contribute, the IRA will have to 'come up with the moo-la'.

    For most, and this is a guess ... (percentages given on invested dollars vs. conversion dollars).

    #1 Is probably ~10% of the gain, independent of holding period
    #2 Will depend on holding period, the shorter the period, the higher the percentage. I would guess a 3-5 year holding period is looking at 40%-20%.
    #3 Will also depend on holding period, the longer the period, the higher the percentage. I would guess a 3-5 year holding period is looking at 50%-70%.
    Aug 18, 2014. 04:00 PM | 2 Likes Like |Link to Comment
  • Build A 'Whatever Happens' Portfolio... Now [View article]
    "versus taking some profits and buying it back later"
    If I had a crystal ball that allowed me to pick the high-sell and low-buy, of course. That, as we both know, can't happen.

    "with your portfolio down as much as 50%, would you really be so clear-headed as to be buying then? "

    Yes, and have done so. If that makes me a "1 in 10" investor, so be it.

    I suspect your professional experience with your clients differs from self directed investors.
    Aug 16, 2014. 06:38 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Miguel,

    My point was that 'unrealized gains' are precisely that.
    One must 'realize' them or else they may become truly 'unrealized'.

    I also have investments in 'potentials', and recognize the risk. It certainly isn't the bulk of my investments however.

    When people tout their unrealized gains I have to question their 'obvious' conclusions about investing. I have literally seen some have millions of net worth evaporate into next to nothing.
    Aug 16, 2014. 06:02 PM | 3 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    retailinvestor,
    My interpretation of the academic research is that indeed "growth needs funding". I also see research that indicates a point which excess retained funds fail to fuel growth, and hence the BOD _should_ be returning that excess to shareholders.
    This isn't an incongruity.
    Aug 16, 2014. 05:42 PM | 1 Like Like |Link to Comment
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